Monday, 28 April 2014


UobKayhian on 28 Apr 2014

FY14F PE (x): 19.0
FY15F PE (x): 16.9

Results in line with expectations. CapitaLand reported 1Q14 net profit of S$182.8m,
down 1.7% yoy. Excluding the portfolio gains of S$9.0m, revaluation gains of S$20.8m
and impairment loss of S$2.7m, the operating PATMI increased 29.9% to S$155.7m
yoy, driven by higher development profits from China and improved performance from
shopping malls. The results are in line with our expectations, and account for 21.5% of
our full-year forecast of S$725m. The sale of Australand was completed on 24 Mar 14.
Maintain BUY with a target price of S$3.83, pegged at 25% discount to our RNAV of
S$5.11/share. The stock is currently trading at a steep 43% discount to its RNAV and
is at an attractive 0.8x P/B.

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